Canada Declared Challenge to Hiked U.S. Softwood Lumber Duties

SEATTLE (Scrap Monster): Canada’s international trade minister criticized the U.S. Department of Commerce (DOC) for nearly doubling duties on softwood lumber.  The U.S. DOC had increased duties on softwood lumber from over 8% to just over 14.5% in August this year, in its fifth administrative review of the duties.

According to Minister Mary Ng, Canada has initiated two legal challenges in accordance with the Canada-United States-Mexico Agreement (CUSMA). The action, according to her, is "unfair" and uncalled for. She said that in addition to hurting the Canadian economy, the duties are expected to cause historically high increases in housing costs for consumers in both nations.

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The legal action would focus on contesting the U.S. anti-dumping and countervailing duties. It should be mentioned that the nation has a lengthy history of contesting American softwood lumber levies in US courts and under the former NAFTA.

The Minister highlighted the need for finding a negotiated solution, saying that she has been calling for a resolution that benefits both the forestry sectors of both countries during her recent meetings with U.S. Trade Representative Katherine Tai. Mary Ng emphasized the country’s commitment to resolving the long-standing trade issue.